The Argus Group?s first half profit jumped 50 percent to a record $13.1 million as it combined satisfactory results in almost all insurance operations combined with significantly enhanced investment returns.

Argus said the results for the six months ending September 30, 2005 also benefited from the addition of the two property and casualty acquisitions made at the beginning of the calendar year.

Gerald Simons, president & chief executive officer for the Argus Group, said: ?We were very fortunate that, in a year of unprecedented storm activity, Bermuda was spared any significant windstorm damage.?

Barring any unforeseen catastrophic events, the Argus Group expects profits for the year ending March 31, 2006 to exceed those of the prior year, the company said.

Total premium income, net of reinsurance, was $42.8 million, a 29 percent increase over same period of 2004 when total premium income was $33.2 million.

The company attributed approximately half of the increase to the inclusion in the current period of the underwriting results of the two property and casualty acquisitions made at the beginning of the calendar year. The remainder reflected continuing efforts to achieve targeted underwriting ratios by appropriate adjustments to premiums, especially in the Group Insurance and Property and Casualty divisions.

?This approach has proved to be successful in all business areas apart from the motor account, which remains unprofitable,? the company said.

Investment income in the six months ended September 30, 2005 was $14.1 million, a 56 percent improvement on the same period of 2004 primarily as a result of increased returns from the portfolio of local equity investments and a gain of $2.8 million from the sale of an overseas equity investment.

Operating expenses and commissions increased 26 percent to $14.3 million in the 2005 period due to acquisitions and the corresponding additions to staff and computer systems as the businesses continue to grow.

Claims and benefits for the period were $37.5 million, compared to $30 million in the same period in 2004.